Hi Joy,
I'm glad that this site is helping you. You've been given very good advice on this thread. Just wanted to say, I don't think your daughter is trying to scare you when she says she's psychic, she probably believes it. I used to justify my weird thoughts, and voices etc I heard by thinking I was psychic. It was a way of making sense of quite nonsensical information that was coming in.

I'm glad that she's still talking to you now that she's out, though she'll probably remain difficult. At least the lines of communication are still open.

When she says something hurtful, you're quite within your rights to let her know... she may take offense and think you're attacking her, but perhaps if instead of saying something like, "you hurt my feelings," you said, "that statement hurts me," it might help. I'm not saying that you personalise things, in fact I'm pretty sure you don't, but remember that if she's paranoid she'll always be looking out for personal attacks. As best you can you have to remain calm. I remember one time it got through to me that I was hurting my Dad he didn't actually say anything. He just sort of teared up, and turned his head away. At that point I realised what I was doing, and I didn't think he was attacking me. It's important she understands that other people have feelings too, it may draw her out of herself a little.

I'm sorry I can't offer better advice than people have here. I do think though that you're doing all the right things. Stay hopeful. Things can improve.